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What Role for the EPAs in the Caribbean?
Author(s) -
Gasiorek Michael,
Winters L. Alan
Publication year - 2004
Publication title -
world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/j.0378-5920.2004.00655.x
Subject(s) - trade diversion , liberalization , trade creation , economics , international trade , product (mathematics) , international economics , trade barrier , free trade , lead (geology) , caribbean region , market access , business , international free trade agreement , market economy , latin americans , political science , geography , archaeology , agriculture , geomorphology , geology , geometry , mathematics , law
The aim of this paper is to consider the possible implications of an EPA between the EU and the Caribbean. The focus is on the Caribbean economies, and on the question of what form of EPA might be pro‐development and pro‐poor for the region. The discussion outlines the specificities of the Caribbean region, and some of the economies therein as well as detailing the key analytical issues which need to be considered. The empirical analysis focuses on examining patterns of trade by product and geographical source at a highly detailed level of disaggregation. The analysis suggests that future EPA arrangements are more likely to lead to significant trade diversion as opposed to trade creation or trade reorientation. MFN liberalisation would serve to minimise trade diversion, but in turn is likely to lead to greater adjustment costs. If the EPAs are to be pro‐development and pro‐poor than maintaining/increasing levels of market access to the EU, and ensuring appropriate levels of assistance and aid will be critical.